An account had $840,000 in it at n=0 the account paid 6% annual interest. Each year...

An account had $840,000 in it at n=0 the account paid 6% annual interest. Each year for 20 years $12000 was withdrawn from the account. What is the amount at n=20, just after the last $12000 withdrawal?

Solutions

Expert Solution

$ 2,252,566.70

Year	Beginning Value	Interest	Withdrawal	Ending Value
	a	b=a*6%	c	d=a+b-c
1	8,40,000.00	50,400.00	12,000.00	8,78,400.00
2	8,78,400.00	52,704.00	12,000.00	9,19,104.00
3	9,19,104.00	55,146.24	12,000.00	9,62,250.24
4	9,62,250.24	57,735.01	12,000.00	10,07,985.25
5	10,07,985.25	60,479.12	12,000.00	10,56,464.37
6	10,56,464.37	63,387.86	12,000.00	11,07,852.23
7	11,07,852.23	66,471.13	12,000.00	11,62,323.37
8	11,62,323.37	69,739.40	12,000.00	12,20,062.77
9	12,20,062.77	73,203.77	12,000.00	12,81,266.53
10	12,81,266.53	76,875.99	12,000.00	13,46,142.53
11	13,46,142.53	80,768.55	12,000.00	14,14,911.08
12	14,14,911.08	84,894.66	12,000.00	14,87,805.74
13	14,87,805.74	89,268.34	12,000.00	15,65,074.09
14	15,65,074.09	93,904.45	12,000.00	16,46,978.53
15	16,46,978.53	98,818.71	12,000.00	17,33,797.24
16	17,33,797.24	1,04,027.83	12,000.00	18,25,825.08
17	18,25,825.08	1,09,549.50	12,000.00	19,23,374.58
18	19,23,374.58	1,15,402.47	12,000.00	20,26,777.06
19	20,26,777.06	1,21,606.62	12,000.00	21,36,383.68
20	21,36,383.68	1,28,183.02	12,000.00	22,52,566.70

jeff jeffy answered 1 year ago

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